Formerly TasGold Ltd ABN

Transcription

1 Formerly TasGold Ltd ABN ADDRESS PHONE PO Box (07) Gold Coast Mail Centre FAX WEBSITE Qld 9726 Australia +61 (07) th October 2006 Australian Stock Exchange Company Announcements Office Announcement Major New Copper Gold Silver Molybdenum Mineralised System Defined Soils to 1.08g/t Gold +1030ppm Copper, in 275m averaging 0.28g/t Gold +545ppm Copper, Located in the North of a 5.5km long Copper in Stream Sediment Anomaly, Bukuam Prospect, East New Britain, Papua New Guinea Frontier Resources is pleased to announce that a grid-based soil sampling program conducted at the Bukuam Prospect (EL 1351) has defined a major, coherent and relatively cohesive zone of copper, silver and molybdenum in excess of 1,400m long that contains a number of strongly gold anomalous zones. The highest assays from the soils were 1.08g/t gold and 1030ppm copper at the eastern end of line 11400N. These peak values are contained in the last of 11 x 25m downline spaced samples representing the 275m in soils averaging 0.28g/t gold + 545ppm copper (incl. 150m zone averaging 0.42g/t gold) that is open to the north, east and south. Jarosite clay, that possibly represents alteration associated with a porphyry copper intrusion, is discernable in the area from Aster satellite data interpretation and generally supports the geochemical data. There is also a >1,500m long and 200m wide silver +/- gold anomaly located immediately west of and parallel to the above noted anomaly. This is coincident with the Kapea Shear Zone, where historic trenches in silicate-sulphide skarns assayed 205m grading 1.9g/t (including 5m of 13.1g/t), 10m of 5.1g/t and 70m of 1.7g/t gold. Theses trenches are located along strike of this soil anomaly about 300m south of the grid. There has been no exploration conducted at Bukuam for about 18 years. SUMMARY The Bukuam Prospect is located in a 5.5km long x 1km wide copper in stream sediment anomaly located adjacent to the eastern margin of the Esis-Sai intrusive granitoid complex in the headwaters of the Sai River in the Kol Mountains of East New Britain. The project area is prospective for porphyry copper-gold silver molybdenum deposits, plus epithermal gold and gold base metal skarns. The Bukuam Project is situated on the eastern flanks of the approx. 20km long x 6km wide Esis-Sai granitoid complex. The exploration target is 200 to 300M tonnes grading 0.8% to 1.0% copper equivalent, from near surface. This target is based on the size and tenor of the soil geochemical anomaly, plus alteration patterns noted near the 3 drill holes historically drilled at Bukuam. The regional example is the Esis porphyry copper occurrence that is also within EL 1351 and is located on the SW margin of the Esis- Sai complex, about 14km to the SW (with extensive historic trenching, creek channel sampling and 4 diamond drill holes). The most significant results from the grid based soil sampling were: 275m of 0.28g/t gold (incl. 150m of 0.42g/t gold to end of line at 1.08g/t gold) with 545 ppm copper, 200m of 0.20g/t gold with 650 ppm copper, 150m of 0.14g/t gold, 75 m of 0.13g/t gold, 75m of 0.12g/t gold, 50m of 0.54g/t gold, 50m of 0.22g/t gold, 50m of 0.19g/t gold, 25m of 0.32g/t gold, 25m of 0.29g/t gold. Additional copper results include: 300m of 730 ppm, 250m of 705 ppm, 250m of 528 ppm, 125m of 688 ppm, 325m of 462 ppm, 125m of 472 ppm and 25m of 1070 ppm (see the table that follows for complete gold and copper results).

2 - 2 - The copper, gold, silver and molybdenum results from the grid-based soil sampling have been interpreted, contoured and are presented below. A follow up program of infill soil sampling was recently completed to better define these anomalies and to determine the attributes of the mineralisation. Assay results from this program are expected in approximately 5 weeks. The Company notes that this project is located about 650km from the Kodu Deposit and Kokoda Track and has no known cultural, social or environmental issues. The Bukuam Prospect (EL Mt Likuruanga) contains significant exploration potential for precious and base metals that is now being evaluated by Frontier to define drilling targets for testing in 2007.

3 - 3 - DETAILS Exploration Licence 1351 Mt Likuruanga, covers approx. 356km 2 in two non-contiguous blocks, on the coast and in the Kol Mountains of East and Central New Britain Provinces, Papua New Guinea.

4 The main prospects are Bukuam (porphyry copper gold, silver and molybdenum and gold sulphide skarns) and Esis/Ulete (porphyry copper occurrence). The Esis/Ulete project area will be discussed at a later date The Bukuam Prospect is located at the northern end of a 5.5km long x 1km wide copper in stream sediment anomaly that is located adjacent to the eastern margin of the Esis-Sai intrusive granitoid complex. The Ip River and copper occurrence on the location plan above occur within this anomaly. The general Bukuam area was subjected to ridge and spur soil sampling about 20 years ago by CRA that defined widespread, but relatively patchy gold anomalism (no other elements were reported). Limited follow-up trenching and channel sampling returned 205m grading 1.9g/t gold in the Kapea Shear Zone creek (including 55m of 5.8g/t gold, including 5m of 13.1g/t gold), plus 10m of 5.1g/t gold (creek outcrop) and 70m of 1.7g/t gold (costean). Three historic holes were drilled, with results such as: 6m of 2.2g/t gold + 9.5g/t silver + 1.2% zinc, 2m of 3.5g/t gold + 9.5g/t silver and 10m of 1.7g/t gold + 2.7g/t silver + 4.8% zinc. The 205m interval remains untested by drilling, according to the geologists reporting on it, the gold grade in the skarn could increase towards the shear zone with a possible bonanza at the contact.

5 - 5 - In addition, there is silver, gold, copper and zinc mineralisation in outcrop in the central to northern sector of the western silver in soil anomaly (NW Kapea) that has not been evaluated, but suggests formation on the periphery of a porphyry copper gold molybdenum system. Grab samples from structures in the creek run to 78g/t silver % copper + 4.0% zinc, with float rock to 6.55g/t gold + 230g/t silver. The drainage flowing to the west of this location is the only one that is known to be silver anomalous in stream sediments in the region. A study of Landsat satellite imagery (ASTER) was completed to help outline areas of potential mineralisation associated with hydrothermal activity and subsequent regolith alteration to clay and Jarosite equivalent minerals species. A total of thirteen areas of interest were identified. Image enhancements were generated to define spectral signatures relating to potential Bukuam Prospect areas of alteration such as Clay Alteration and Targets from Aster shown in anomalous clay and Satellite Data Jarosite equivalent signatures (see figures below). Structural interpretation together with analysis of historical stream sediment geochemistry helped prioritize selected spectral anomalies. Jarosite alteration is related to both the Kapea Creek shear zone, and at an area 400m to the north. Overall, three alteration areas were defined near the Bukuam prospect. Surrounding Bukuam within a 6km radius, occur five other areas of alteration that were selected as potentially associated with porphyry style mineralisation. The silicate-sulphide skarn mineralisation at the Bukuam Prospect contains the following sulphides in order of decreasing abundance: sphalerite, pyrite, chalcopyrite, covellite, tennantite-tetrahedrite and native gold. Sphalerite is typically dark red-brown in colour (Fe-rich) and often contains minute blebs or stringers of chalcopyrite. It is found as veins and disseminations within the wall rocks of the calcareous sediments. In the skarn mineralisation, sphalerite occurs as inclusions in apatite. Rare chalcopyrite (observed in a single quartz vein) is intergrown with late pyrite and has undergone local supergene alteration to covellite. Malachite has been tentatively identified in drill hole BU3 and may be a weathering product of chalcopyrite. Native gold is encountered as a number of different forms including: 1. Inclusions in pyrite that has been partially altered to haematite.

6 Grains within cavities or as inclusions in apatite grains 3. Grain deposited in a cavity in a quartz-calcite-tremolite-chlorite vein. Bukuam Prospect Jarosite Alteration and Targets from Aster Satellite Data Zinc-copper mineralisation is associated with the high temperature magmatic phase of activity. Gold mineralisation has accompanied the base metal event, followed by a possible late-stage gold enrichment event. The zonation of the alteration assemblages, i.e. outer propylitic (epidote) phyllic (sericite) inner propylitic/calc-silicate (actinolite-tremolite) potassic (biotite), and the presence of the skarn assemblage due to contact metamorphism, indicates that the zinc-copper-gold mineralisation at Bukuam is related to an unidentified nearby intrusive porphyry body. This body is interpreted to dip steeply NE, possibly only at a short distance to the NW or SE of the drill section. Exploration was undertaken at the Bukuam Prospects during July/August this year and an additional infill and extension soil sampling program has just been completed. The objective was initially to identify new anomalies, delineate and define the area of gold mineralisation and re-sample the higher grade gold intervals from the creeks and trenches. About 7.5 line km of grid based soils were completed covering about 1.2km² but several ends of lines could not be finished. The historic trenches were re-located during follow-up. A 3km long, north south oriented, slope corrected baseline was surveyed with cross lines every 200m apart and samples collected every 25m (uncorrected). Due to program time and personnel constraints, only the northern half of the proposed grid was completed. A total of 307 samples were collected using a spade to a depth of about 50cm from the deeper B or C horizons. The results of the soil sampling at Bukuam are very encouraging and defined a number of anomalous gold zones within the broad copper-molybdenum anomalies.

7 The highest gold assay from the soils was 1.08g/t from the eastern end of line 11400N, in a 150m zone averaging 0.42g/t gold that is open to the north, east and south. The highest copper assay in soils was 1030 ppm, as part of the same intervals noted above, but recalculated to 275m interval grading 545 ppm copper Weighted Average Gold Assay 12600N 75m of 0.12 g/t 9675E Weighted Average Copper Assay 25m of 1070 ppm 250m of 528 ppm 9987E 10212E 12400N 125m of 688 ppm 10237E 12200N 125m of 472 ppm 9900E 25m of 0.12 g/t EL Bukuam Prospect Weighted Average Gold and Copper Assays in Grid-Based Soil Samples Soil Line No Centred on 10075E Centred on The larger copper, molybdenum, silver +/- gold anomaly is located in the eastern half of the grid and appears to cover >1,400m in a NNW-SSE orientation and is 250 to 350m wide. Several lines did not reach the inferred location of the anomaly and as such, its length and width is currently uncertain. 25m of 0.29 g/t 10400E 300m of 730 ppm 10200E 12000N 200m of 0.20 g/t 10112E 200m of 650 ppm 10112E 25m of 0.13 g/t 10200E 11800N 25m of 0.10 g/t 9875E 50m of 0.19 g/t 10037E 11400N 150m of 0.14 g/t 9732E 25m of 0.32 g/t 10050E 275m of 0.28 g/t 10375E 275m of 545 ppm 10375E (incl 150m of 0.42 g/t with 1.08 g/t Au at end of line 11200N 50m of 0.54 g/t 9737E Exploration follow-up involved: 1. Soil sampling of length and width extensions to the existing grid, 2. Locating, cleaning and 25m of 0.10 g/t 12175N sampling historic trenches containing 50m of 0.22 g/t 11937N significant gold 75 m of 0.13 g/t 11400N mineralisation 3. Geological evaluation of soil anomalies 4. Sampling in other specific areas of known geochemical interest. Baseline 250m of 705 ppm 12587N 325m of 462 ppm 12087N The follow-up program s objectives were to improve the confidence and orientation of the soil assay interpretation with higher density sampling and evaluate the silver (+/- gold) in grid based soil anomaly that covers >1,500m in a NNW-SSE orientation and is 100 to 250m wide and located to the north of the Kapea trenches (ie about 300m south of the grid). One of the three holes drilled at Bukuam had extensive low level silver anomalism showing the strike extent is at least 300m longer than indicated by gridding to date. The samples from the last phase of the program have now been shipped to the laboratory and results are expected to be returned in about 5 weeks. Frontier have refocused exploration priority to the highly mineralised Rim of Fire, Papua New Guinea and the advanced Kodu, Andewa and Bukuam Projects. The Company has a 100% interest in an approx. 7,500km 2 portfolio of quality copper and gold properties in PNG, with 3 Exploration Licenses (Kodu, Andewa and Likuruanga) and 8 EL applications. Frontier is seeking to advance its other projects by joint ventures or sole funding.

8 - 8 - The portfolio offers excellent mineral deposit potential, with primary targets being World Class copper/gold/molybdenum porphyry, gold/silver epithermal and polymetallic - zinc/lead/silver VHMS deposits. The projects all have high-grade exploration results in rock, trenches and drill hole and are in the same or similar geological terranes as existing World Class and/or major mines. The Company is an ASX listed junior mineral explorer whose shares also trade on the Frankfurt, Berlin and Munich Stock Exchanges. The Company operates with a general policy of DRILLING our quality projects using our self manufactured, cost effective, environmentally friendly, man-portable diamond core rigs. Frontier s Director/Management team have more than 100 years combined experience in PNG. For additional information relating to the Company and its projects please visit our website at or feel free call me on +61 (0) FRONTIER RESOURCES LTD P.A.McNeil, M.Sc. MANAGING DIRECTOR The information in this report that relates to Exploration Results is based on information compiled by, or compiled under the supervision of Peter A. McNeil, Member of the Aust. Inst. of Geoscientists. Peter McNeil is Managing Director of Frontier Resources and is a consultant to Frontier Resources; he has sufficient experience which is relevant to the type of mineralisation and type of deposit under consideration to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting Exploration Results and consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.